Bangernomics for Business
Discussion
Does anyone run a shed for business miles? If so, how do you get on?
Just been offered a new job, complete with company car if I want it, or mileage for personal car and a bigger salary otherwise. At the moment I have a 306, which while it has 170k on the clock has always been pretty reliable and goes through MOTs without too many issues. The car owes me nothing, I service and repair it myself, and while I have thought about replacing it I just dont see the point. It has DAB radio, bluetooth, leather seats, climate control etc. Everything I would want in a new car.
Now, a company car is likely to cost me around £80/month in tax I think. Lower rate taxpayer, middle of the range 3 series - sound about right? That is about £1000 a year in tax to run a new BMW. Sounds good. BUT....
The current car costs 20ppm to run. All in. Tax, insurance, fuel, everything. If I get paid 45ppm, I earn £1 every 4 miles, or about £150 a tank on top of what it costs me! Now, sure after the first 10,000 miles it goes down, but by then Ive already added £2500 to my wages as well as a bigger salary to start with. Obvious risk is my car breaking down and being stuck without. For c/car they would fix it or give me a replacement in the meantime. Personal car doesnt have that security. For anything minor I would do myself, engine or gearbox would be a friendly mechanic.
Has anyone been in a similar position and how did it work out? Cars dont especially excite me, I have no real desire to change it for the sake of changing it, but equally if I can run a new car very cheaply its obviously worth looking at.
Just been offered a new job, complete with company car if I want it, or mileage for personal car and a bigger salary otherwise. At the moment I have a 306, which while it has 170k on the clock has always been pretty reliable and goes through MOTs without too many issues. The car owes me nothing, I service and repair it myself, and while I have thought about replacing it I just dont see the point. It has DAB radio, bluetooth, leather seats, climate control etc. Everything I would want in a new car.
Now, a company car is likely to cost me around £80/month in tax I think. Lower rate taxpayer, middle of the range 3 series - sound about right? That is about £1000 a year in tax to run a new BMW. Sounds good. BUT....
The current car costs 20ppm to run. All in. Tax, insurance, fuel, everything. If I get paid 45ppm, I earn £1 every 4 miles, or about £150 a tank on top of what it costs me! Now, sure after the first 10,000 miles it goes down, but by then Ive already added £2500 to my wages as well as a bigger salary to start with. Obvious risk is my car breaking down and being stuck without. For c/car they would fix it or give me a replacement in the meantime. Personal car doesnt have that security. For anything minor I would do myself, engine or gearbox would be a friendly mechanic.
Has anyone been in a similar position and how did it work out? Cars dont especially excite me, I have no real desire to change it for the sake of changing it, but equally if I can run a new car very cheaply its obviously worth looking at.
Check what stipulations your company may have in pace, first.
It's pretty common that they'd expect you to have something within about 7 years of age as well as being a proper four-seater and a tin-top which isn't an issue in your case.
Once thing I will say is that if you do cover decent mileage, this does open the door for more service work, parts failure, and consumables costs. It's also helpful (in my eyes) to have a car you don't give a crap about.
I considered opting out and in the first year and 27k of miles, I've had several punctures, two failed parking sensors, three 'incidents' and several near misses. I'm real glad I can pick up the phone to get someone else to deal and pay with the issues.
It's pretty common that they'd expect you to have something within about 7 years of age as well as being a proper four-seater and a tin-top which isn't an issue in your case.
Once thing I will say is that if you do cover decent mileage, this does open the door for more service work, parts failure, and consumables costs. It's also helpful (in my eyes) to have a car you don't give a crap about.
I considered opting out and in the first year and 27k of miles, I've had several punctures, two failed parking sensors, three 'incidents' and several near misses. I'm real glad I can pick up the phone to get someone else to deal and pay with the issues.
I do 35k a year in a 14 year old Toyota.
As someone's already said, check the stipulations. The panacea here is the company keeping the car option 'open'. In which case I'd run the pug until it snaps - bin it off and then either opt in or look to buy something else you like. This way you can delay making a decision.
Bangernomics (either pure or diluted) does need commitment. You WILL find yourself cursing about something every now and again, so make sure you put the motoring savings towards something tangible. That way you can see benefit from your frugality!
As someone's already said, check the stipulations. The panacea here is the company keeping the car option 'open'. In which case I'd run the pug until it snaps - bin it off and then either opt in or look to buy something else you like. This way you can delay making a decision.
Bangernomics (either pure or diluted) does need commitment. You WILL find yourself cursing about something every now and again, so make sure you put the motoring savings towards something tangible. That way you can see benefit from your frugality!
I do 35k a year in a 14 year old Toyota.
As someone's already said, check the stipulations. The panacea here is the company keeping the car option 'open'. In which case I'd run the pug until it snaps - bin it off and then either opt in or look to buy something else you like. This way you can delay making a decision.
Bangernomics (either pure or diluted) does need commitment. You WILL find yourself cursing about something every now and again, so make sure you put the motoring savings towards something tangible. That way you can see benefit from your frugality!
As someone's already said, check the stipulations. The panacea here is the company keeping the car option 'open'. In which case I'd run the pug until it snaps - bin it off and then either opt in or look to buy something else you like. This way you can delay making a decision.
Bangernomics (either pure or diluted) does need commitment. You WILL find yourself cursing about something every now and again, so make sure you put the motoring savings towards something tangible. That way you can see benefit from your frugality!
You will also need to factor in the extra insurance costs for business use as well.
We can also opt out at work as well but there are stipulations .
Car no more than 5 yrs old
Must have 4/5 doors
Seat 4 adults
Tin top
Premium brand fitting to the same offered by the company
Everyone at work who does +15k per year has a company car, only a couple of people who have a car as a perk and not required for there role have opted out.
We can also opt out at work as well but there are stipulations .
Car no more than 5 yrs old
Must have 4/5 doors
Seat 4 adults
Tin top
Premium brand fitting to the same offered by the company
Everyone at work who does +15k per year has a company car, only a couple of people who have a car as a perk and not required for there role have opted out.
Check the T&Cs of policy.
They will likely have a max age of car which you can run - you will need to supply annual MOTs copy of insurance and they also need proof that it is being serviced and it needs to be by a VAT qualifying garage self servicing doesn't cut it - why well say a part you fitted on the car failed and you were injured on a business journey there would be no H&S compliance.
The self servicing aspect on one co car scheme I had was the reason I chopped my old Foat Coupe 20VT in and always main dealer service my cars now.
Note the servicing part may not be in your policy but if it is it makes it a much less viable option especially when your comparing a £240 cost for a very old Pug to a brand new BMW £1000.
They will likely have a max age of car which you can run - you will need to supply annual MOTs copy of insurance and they also need proof that it is being serviced and it needs to be by a VAT qualifying garage self servicing doesn't cut it - why well say a part you fitted on the car failed and you were injured on a business journey there would be no H&S compliance.
The self servicing aspect on one co car scheme I had was the reason I chopped my old Foat Coupe 20VT in and always main dealer service my cars now.
Note the servicing part may not be in your policy but if it is it makes it a much less viable option especially when your comparing a £240 cost for a very old Pug to a brand new BMW £1000.
I think the idea is all well and good until the car breaks down and you can't get to work on time - I would much rather be running a company car in that type of situation as it is not my problem! Also, even if they don't have formal rules for running your own car, I doubt they would be impressed if you are turning up to meet clients in a 10+ year old shed.
If you get a company car allowance then your pence per mile will drop to 26p. Well at least mine does.
I think you can claim tax back on it too, though I am new to all this self-assessment malarkey.
My company do have stipulations about the car being professional, clean and roadworthy, but they offer stuff like Suzukis so their definition is loose. They just don't want you showing up in a rusty old Corsa. I think my £800 E class is a much more businesslike car than most of the stuff on the list.
In my company the monthly cost of all the cars in the scheme (run by Tusker) seems way higher than leasing the same car privately, and you can't get anything really nice. I know it includes insurance and servicing but still it's too high for me. For the monthly cost of a C class diesel. I bought my car outright, and paid the same again to insure it. So I've opted to take the cash and use it towards any repairs I need on the Panzerwagen. If it costs me a few thousand in repairs (which it won't) then I am still way ahead, and don't have to drive a bloody diesel.
I think you can claim tax back on it too, though I am new to all this self-assessment malarkey.
My company do have stipulations about the car being professional, clean and roadworthy, but they offer stuff like Suzukis so their definition is loose. They just don't want you showing up in a rusty old Corsa. I think my £800 E class is a much more businesslike car than most of the stuff on the list.
In my company the monthly cost of all the cars in the scheme (run by Tusker) seems way higher than leasing the same car privately, and you can't get anything really nice. I know it includes insurance and servicing but still it's too high for me. For the monthly cost of a C class diesel. I bought my car outright, and paid the same again to insure it. So I've opted to take the cash and use it towards any repairs I need on the Panzerwagen. If it costs me a few thousand in repairs (which it won't) then I am still way ahead, and don't have to drive a bloody diesel.
The other thing is IF your car breaks down you have to get a hire car there and then just like you would receive with a co car.
What is interesting is Evo Harry Metcalfe and others have now started to champion cheap personal contract hire deals being better than bangeromics. Take that as you wish.
What is interesting is Evo Harry Metcalfe and others have now started to champion cheap personal contract hire deals being better than bangeromics. Take that as you wish.
Welshbeef said:
The other thing is IF your car breaks down you have to get a hire car there and then just like you would receive with a co car.
What is interesting is Evo Harry Metcalfe and others have now started to champion cheap personal contract hire deals being better than bangeromics. Take that as you wish.
I think they're right at 10K pa.What is interesting is Evo Harry Metcalfe and others have now started to champion cheap personal contract hire deals being better than bangeromics. Take that as you wish.
However at 20K it's a different scenario.
At 30K and a decent sized car, there's only one winner in the affordability stakes.
You also have to consider the image you are putting across to your new company, bosses may not be too impressed if it is perceived that you are "taking the piss" by trousering car allowance & running a banger.
When you went for your interview did you see what sort of cars existing staff drive?
When you went for your interview did you see what sort of cars existing staff drive?
£5.5K pa car allowance here and do 20K a year in a 2003 MG ZT CDTI that I paid £2.5K for. I self service to the point of even changing the clutch with a mate over a weekend when it went pop. I'm an account/service manager and take clients out in it quite often. It does the job, doesn't look to shed like and is averaging 48mpg despite my lead foot so I make a small amount on my 18ppm I get for fuel.
If it had a major problem that needed a few day out of action I can use the MX% to get to the office or work from home. If a customer visit is is required HR will rustle me up a hire car for the day.
We get the allowance and there is no actual policy to go with it. Up until a couple of weeks ago the MD rolled around in a 96 Volvo estate so I didn't have the oldest car in the "allowance fleet" but it recently died so he's got a 61 plate 5 series Touring now.
If it had a major problem that needed a few day out of action I can use the MX% to get to the office or work from home. If a customer visit is is required HR will rustle me up a hire car for the day.
We get the allowance and there is no actual policy to go with it. Up until a couple of weeks ago the MD rolled around in a 96 Volvo estate so I didn't have the oldest car in the "allowance fleet" but it recently died so he's got a 61 plate 5 series Touring now.
Craikeybaby said:
You also have to consider the image you are putting across to your new company, bosses may not be too impressed if it is perceived that you are "taking the piss" by trousering car allowance & running a banger.
When you went for your interview did you see what sort of cars existing staff drive?
I would be the only one in that office on a c/car, so I doubt there would be much of a worry about pisstaking. The 2 directors both use their own cars, but dont do as much business on the road as I would be. The image is a bit of an issue, maybe something I need to chat to them about. Its an estate, so doesnt look 'boy racer' but cosmetically its not 100%. There are a few scratches here and there, although no big dents. When you went for your interview did you see what sort of cars existing staff drive?
Not entirely sure why it was offered tbh. They are trying to interest me, so Im not sure if they looked at my current wheels and just assumed that being young I would want a nice, newer car, or if they actually wanted 'an image' when out and about. It'll up and down farm tracks so isnt likely to stay clean long anyway.
For me it would be an issue of reliability.
I just couldn't bear calling a customer to explain that I'll be late/not make a meeting altogether because my shed has broken.
Also, if I was doing a lot of miles, I'd want something comfortable. I opted in to a Passat and the difference on the motorway to my old Golf is really noticeable.
Finally, never underestimate the convenience of just picking up the phone and letting someone else deal with maintenance, insurance, tax, etc.
I just couldn't bear calling a customer to explain that I'll be late/not make a meeting altogether because my shed has broken.
Also, if I was doing a lot of miles, I'd want something comfortable. I opted in to a Passat and the difference on the motorway to my old Golf is really noticeable.
Finally, never underestimate the convenience of just picking up the phone and letting someone else deal with maintenance, insurance, tax, etc.
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